Japan’s steel demand is expected to remain stable in the fourth quarter
According to Japan’s Ministry of Economy, Trade and Industry（METI）recently released the forecast, the fourth quarter of this year, Japan’s crude steel production will reach 26.51 million tons, up 0.4% year on year, the chain grew 1.5%. Japan’s Ministry of Commerce in the statement explained that by the seasonal factors, the fourth quarter of Japan’s construction industry demand increase for steel, and civil engineering projects are also active.
The METI said that growing slowly with demand for municipalities and projects related to the Tokyo Olympic Games in 2020, so the overall steel demand in the construction industry will continue to grow. It is estimated that the fourth quarter of the construction industry demand for ordinary steel slightly increased by 0.8% year on year, chain growth 3.8%, reaching at 5.74 million tons.
For manufacturing, the Japanese’ METI is expected to continue to grow in demand in the fourth quarter, It is due to stable sales of new cars in Japan, and exports of finished goods vehicles to Asia also keep stable. Demand for ordinary steel in the Japanese manufacturing sector in the fourth quarter is expected to increase by only 0.3% to 6.97 million tonnes, but the chain is down 0.1%.
For the manufacturing industry, the Japanese’ METI is expected in the fourth quarter shipbuilding steel demand fell significantly by 6.3%, chain down 0.6% to 1.04 million tons, while the automotive industry demand for steel will be slightly increased by 0.4%, chain growth of 1.2% Million tons.
As for exports, the Japanese’ METI is expected in the fourth quarter, Japan’s steel exports fell 5.4%, but the chain grew 2.2% to 7.8 million tons. The Japanese’ METI said in a statement, the fourth quarter of Japan’s steel exports growth is mainly due to overseas, especially Asian car manufacturers and construction machinery manufacturers to maintain stability. Japanese steel traders pointed out that the decline in Japanese steel exports fell mainly reason is Japan’s joint steel plant to give priority to meet the domestic market demand, but because of rising overseas steel prices, making steel exports once again become attractive, the Japanese steel companies may increase export amount.